
IntroductionLarge or mid-sized fund raising events, such as concerts, golf tournaments, auctions, dinners, or walks and runs, can sometimes be an effective way to raise money for a nonprofit organization. However, there is nothing simple, easy or low-cost about any of these events. Even a small event at your house or in your yard, with just your friends has some costs and requires at least some planning and clear financial management. Larger events require even more planning, as well as coordination with other organizations as well. In addition, community events -- carnivals, performances, day camps, lock-ins and other activities -- also come with many costs and require a lot of planning and coordination with other organizations in order to be successful and to not get anyone into financial trouble. This page is meant to provide details of what it takes
to create a successful fund raising or community event
-- one that actually raises money for a nonprofit or
charity or provides some kind of community benefit, and
one that doesn't get anyone into financial trouble -
which happens all too often. Most of the suggestions are
for mid-sized and large events. There's an entire
section on small, very simple fund
raising activities as well.
Permission from the OrganizationYou will need written permission from the organization to hold a fund raiser or any event on its behalf. Contact the organization and tell them exactly what it is you want to do regarding this event, how you will conduct financial accounting for the money you make, including what budgeting apps you will use, how you want to advertise, etc., and ask about their rules for financial management, advertising, branding, and any other policies they may have that can affect your event. If they give you verbal agreement, then write an email or letter and say, "This is to confirm our conversation via phone/Skype/lunch at Arby's/whatever and your agreement that I will hold an event on such-and-such date to raise money for your organization." If you want to hold an event for a person or family (to cover medical bills, to cover funeral expenses, etc.) make sure you have permission by the person or family to do so. Again, if they give you a verbal okay, then write an email or letter and say, "This is to confirm our conversation via phone/Skype/lunch at Arby's/whatever and your agreement that I will hold an event on such-and-such date to raise money for your son/daughter/mom/whatever." If the event is to help children, the elderly or any other group, it's best to do such an event through an existing organization, to add legitimacy for your activity and provide the expertise and guidance you probably don't have on your own. Plus, it can remove a tax liability - if you deposit money in your bank account from a fundraising event, even if it's from this event and you donate it immediately, you may have to pay taxes on this! If you think these steps are unnecessary, have a look
at the Judge
Judy episode from August 22, 2016 about two people
that were supposed to do a fundraiser to raise money for
medical expenses for a sick child. Why Will People Want to Attend?To make the event worthwhile, you must have lots of attendees that give you money. People do not attend fundraising events where the reason is: "This poor nonprofit is desperately in need of funds, please come give some money!" People's time is at a premium. There is a lot of competition out there for people's spare time. Why would they want to spend their precious spare time at your event? Answering these questions can help:
Costs for Mid-Size to Large EventsNo event is ever free. There are a number of things someone must pay for, or have donated. These include some or all of the following, depending on the size of the event and the venue (most of these won't apply to a small event at your house or in your yard, with just your friends):
A good way to anticipate all costs is to mentally imagine the event, from start to finish, as an attendee. Picture the person arriving at the event, and then everything that person will see and experience. As you picture each scenario, think "who will pay for that? who will provide that? who will be in charge of that? who will make that happen?" Asking for donated services is easier said than done. Bars, restaurants, halls, venues, theaters, golf courses, parks and various other venues are asked constantly to have their facilities donated, and most refuse; they might have a reduced rate for a nonprofit event, but there will still probably be a rental fee. They will have to have staff at the event, to ensure grounds or facilities are not damaged, and those people must be paid. The nonprofit organization or charity you are going to help with this event does NOT want to be asked to fund any of the costs of the event, including advertising, and they very likely don't want to be asked to staff the event. If you think the organization is going to pay for anything at all associated with the event, such as postage for a mailing about the event, or that they are going to staff the event, even attend the event, you need to have this agreement made in writing. You will have to do a lot of research to determine
where you will be holding the event. Budget will
probably be the determining factor. What you actually
want to do during the event will also influence your
decision.
Logistics & ResponsibilitiesEven the most simple fund raising events don't magically happen without much work. Hours and hours of work takes place just so that an event begins on time. Again, you need to mentally imagine the event, from start to finish, as an attendee. Picture the person arriving at the event (even if its something simple at your house), parking, walking through the front door, and everything that person will see and experience. As you picture each scenario, think "who will make sure that happens? what will need to be done to make sure that's where it's supposed to be?" Make a list of absolutely everything that needs to be done, and who will do each activity. Be as detailed as possible! You will also need to do a detailed schedule of what needs to happen when. What will happen an hour before the event and who will do what? Two hours before the event? The morning of the event? The night before the event? The week before the event? Two weeks before the event? How will you know each activity has been done? You
must answer this question to ensure that everything is
taken care of!
SponsorsSponsors are asked to pay a fee that helps cover the costs to hold the fundraising event, so that more of the funds paid by attendees go to the nonprofit or charity. Your goal with sponsors is to get enough money from them to pay for all costs of the event, so that 100% of the money generated by individual attendees goes to the charity or nonprofit. Most of the organizations you approach to sponsor an event will have already received dozens, maybe hundreds, maybe even thousands, of requests to sponsor events. How will you distinguish your fundraising event from all those others such that a sponsor would want to fund your event? What sponsors are looking for:
To find sponsors, you need to do a LOT of research about what companies are represented in your area and (1) what their charitable focus has been in the last 12 - 24 months and (2) what information they have online about their philanthropic activities. Your local library can help you find this information. You will use this information to make a list of potential sponsors. You then need to ask the nonprofit you are assisting and all volunteers who will be helping out if they have any connection to these companies in some way. Use these existing connections (friends and family of co-workers, past employees, etc.) to find out whom to contact at the organization regarding sponsorships. You may have to call the companies yourself, "cold", with no one to introduce you, to find out who sponsorship proposals should go to (it will be someone in the human resources, marketing or public affairs department if it's a large corporation). MarketingMarketing the event is the easy part! For a large or mid-sized event (rather than one you will have at your house, for instance), you can:
Marketing for a mid-size or large event needs to get
out early and often. People need to hear about the
event, no matter the size, months in advance, and then
again weeks in advance, and then again days in advance. Track EVERY Donation in Writing
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